The worldwide outbreak and National lockdown due to COVID 19 not only affecting financial sectors but also the poor and daily wagers are in great danger. The government of India declared the relief package named Pradhan Mantri Garib Kalyan package which directly transfers cash to poor and lower class family’s bank account through DBT.
According to news, around 37 Thousand Crore Rupees are provided through DBT, But there are still so many peoples who didn’t get benefited by this scheme and so many rural people /villagers are unable to Debit their Money through banks. Peoples in tribal areas face a lack of internet connection and improper information and faulty Aadhaar-linked bank account and some other technical errors.
Government Uses DBT in subsidizing and other schemes & plans to transfer cash directly to the bank account of beneficiary But due to lack of digitalization, still there are so many issues in it. Biometric Mismatch, verification related problems, and lack of internet are the main issues but there are so many other factors Like the middle man commission, interference of the third person between the bank and the individual, corrupt government employees.
Lets Discuss About What is DBT?
What is DBT
DBT is a government-initiated mode of bank transfer in which the amount directly transferred to the beneficiary without the interference of third-person. DBT scheme started on 1 Jan 2013. Which was used in direct cash transfer to the bank accounts of the needy in schemes like, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Scholarships, Pensions, and subsidized schemes.
For DBT every individual Must have Aadhar card and Aadhar no. should be linked with His/Her bank account, this helps the government to directly transfer the amount from their personal information that weather he is needy or not.
The main advantage is that it makes the door to door money delivery process successful with effectiveness and efficiency. The complete process of DBT is based on the Aadhaar payment bridge and Aadhaar enable payment system.
Benefits of DBT
It is not wrong to say DBT ‘A revolutionary change’ Because the poor society always demanded better welfare and plans for their good future and this is a great changing solution. Indias Late former Prime minister Rajeev Gandhi said in his speech that if the government sends 1 rupee to the needy, what he gets is only 15 paisa (approx 1/7) because of the middlemen and broker’s commission.
Because it stops the interference of the middlemen commission, it is the most successful step towards controlling corruption. DBT beneficiary requires a bank account linked to aadhar which makes it more secure and the money is easily provided to the right person, and the individual cannot do any fraudulent activity to the bank and can’t take the money twice at a time.
It is also an efficient and rapid mode of cash transfer to the needy, which is far better from the complicated and time-consuming offline method. At present because of the Pandemic, nationwide lockdown situation, DBT comes to be the most effective and useful scheme for the country.
The database of the individuals from earlier schemes is used for further DBT plans by the government. In this method, the beneficiary is selected and the proper required amount is transferred to them. This database consists of names according to their financial condition and no. of the individual in the family which helps the government to target the needy.
MGNREGA laborers and daily wage workers are also gets benefited from getting an electronic cash transfer system that directly transfers to their bank account which helps the government to control fraud middleman, brokers, illegal, and multiple job cards. still, there are so many challenges for the government that let’s discuss them.
Challenges of DBT
No doubt that DBT helped in controlling the corruption rate as much as possible but still there are some challenges. Directly transferring cash to the bank account makes the individual free to use it in any illegal activities like drinking alcohol, gambling, and betting. So to avoid that, the government trying to transfer cash to the bank account of chief women of the family as much as possible.
Even after the Jan Dhan accounts, India has a very less number of bank account holders, which is one of the major challenges for the DBT method. In tribal and under poverty line areas still, people are unaware of bank accounts, Aadhaar-linking which eventually leads them to be deprived of DBT schemes, because they are not listed in the government database. Bio matric mismatch, verification failure, and internet connectivity problems are also a challenge that is still seen in so many villages even after 72 years of independence.
Lack of internet connection or weaker connection leads to a bad impression on the user for the digital services because of improper knowledge about mobile phones and computers. until we fix this problem the dream of digital India infrastructure remains the dream. In under poverty line or tribal areas, there are still many problems faced by the public because of corrupt government employees, brokers, and middle man for their own wealth and commission
Conclusion and Solutions
As I mentioned earlier there is a lack of bank accounts to get benefited from the government DBT schemes, the only way from my opinion is to spread awareness and encourage people to open more and more bank accounts
The second problem lies with the internet connection which is maximum in below poverty line areas so far the government must take any appropriate action as soon as possible to connect the villages and tribal areas with the internet. digital India infrastructure’s mission should be implemented effectively and seriously.
The government initiated a good step towards this by announcing a national broadband mission that aims to connect the whole nation along with the below poverty line and tribal areas with broadband connection till 2022. The bill for The number of Mobile towers also increased from 550000 lakh to 1000000 lakh.
The government should start looking at the proper Aadhaar-linked bank account distribution and bank account opening so the individual should get benefited from the schemes. for that government has to fix the basic need and foundations of the schemes
According to you which is the most Challenging factor For DBT? comment down below